Walmart Hits Buy Zone As These Retailers Hold Up Amid Correction

The stock market correction continues, but some retailers are still holding up. Walmart (WMT) stock rallied Monday, moving above a buy point intraday.

Shares of the retail giant have been climbing since early October, counter to the slide happening in the broader market, and Walmart's 50-day moving average in September crossed above its 200-day line.

Its relative strength line is also climbing, retaking highs from February. Walmart stock has a Relative Strength rating of 87 out of a possible 99.

Walmart stock rose 0.9% to 99.80 on the stock market today. Shares rose as high as 101.73, clearing a 100.31 buy point in above-average volume, after forming cup-with-handle base for nearly nine months.

Be mindful that investors are advised to exercise caution when buying during a stock market correction.

Walmart To Open Tech-Forward Sam's Club Now

The big-box retailer is moving assertively to establish itself as an e-commerce powerhouse with forward-thinking technology.

Just last week, the company announced that it was working to offer free two-day shipping on millions more items and the ability to return them at any of its locations. (Walmart has over 4,700 stores.) Free two-day shipping would rival Amazon's offering, which is only available to paying Prime members.

And on Monday, Walmart's membership warehouse Sam's Club said it is opening a 32,000-square-foot "mobile-first shopping experience" dubbed Sam's Club Now. The cashier-less Dallas-based pilot location will be a "technology lab that doubles as a live retail club," and will serve as a testing ground for tech-based retail innovations.

Shoppers can scan product bar codes while they shop, using the company's Scan & Go app. The company also promises intuitive, auto-filled shopping lists based on order history, voice-controlled store maps, augmented reality and one-hour pickup.

Amazon's cashier-less store, Amazon Go, has about half a dozen existing locations and plans to open more.

Ollie's Bargain Outlets, Discounters Holding Steady

Meanwhile, Walmart stock isn't the only one holding steady. Several discounters are performing well enough, despite the recent market downturn.

Ollie's Bargain Outlets (OLLI) on Monday found support at its 50-day line as its relative strength line reaches a record high. Shares were up 0.5% to 88.67, not far from a recent peak of 97.61.

Dollar General (DG) is attempting to break out of a flat base with 112.69 buy point. Its relative strength line is nearing its all-time high from mid-2016. Shares advanced 1.9% to 109.92.

And while Five Below (FIVE) breached support at its 50-day line in tandem with the broader market correction, shares have not been burdened as heavily as many other stocks. Shares rose 1.3% to 111.85 Monday. The stock reached a new high of 136.13 in early September, and has a Relative Strength rating of 98.

YOU MIGHT BE INTERESTED IN:

Amid Market Rout, Avoid These Investing Blind Spots; Futures

Ollie's Bargain Outlet Leads Dollar Store, Discount Industry Divergence

IBD Stock Of The Day

Retail And E-Commerce News And Stocks To Watch

Let's block ads! (Why?)